Your McCarthy Update
Marty McCarthy, CPA, CCIFP
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Focused on You. Dedicated to Your Success.
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July 12, 2021
McCarthy Thought Leadership
(CE This Week) Consider a Business Line of Credit Instead of Personal Loans for Construction. Kyle Hartranft, CPA, explains why a personal credit might not be the best option to fund your business. Under certain circumstances, the borrower’s credit can be damaged, or tax deductions may have to be forfeited. Learn why.
Construction & Real Estate News
(ABC) How did the housing market turn white-hot? It wasn't just the pandemic. Trouble was brewing before the current boom in housing prices, experts say, with lower-income and first-time homebuyers facing rising hurdles to homeownership. Read more.
(CNBC) Mortgage applications sink to their lowest level since before the pandemic hit. Mortgage applications decreased 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, falling to the lowest level since the beginning of 2020. Learn why.
(GlobeSt.com) Apartment Demand Hits Record High in Q2. Rising employment growth has spurred household formation. Read more.
(GlobeSt.com) Indoor Malls Are Prime Candidates for Mixed-Use Redevelopment. Malls are being converted into higher and better uses, but mixed-use seems to offer the most upside. Discover why.
(GlobalSt.com) Lumber prices are higher than they appear. While prices have dropped 50%, the prices for builders are a fraction of that amount. Learn more.
(GlobalSt.com) Why landlords must adopt and refine flex strategies to survive a rapidly changing real estate market. This research reveals several disparities between what landlords offer in the flex space market and what tenants expect. Download the report for key insights.
Accounting & Tax News
(Accounting Web) Business Meals May Serve Up Big Deductions. As the country emerges from the pandemic, more people are going places, engaging in recreational activities, and enjoying the great outdoors. This can lead to tax-saving opportunities for both individual taxpayers and small business owners. Read more.
(CNBC) Inheriting an individual retirement account? Here’s how to avoid a tax bomb. The Secure Act of 2019 added new rules for inherited IRAs, requiring many heirs to withdraw the balance within 10 years. Learn more.
(Office of Governor Murphy) Governor Murphy signs legislation to protect New Jersey workers, employers from unlawful misclassification. A four-bill legislative package was signed to help stop employee misclassification. Read more.
(Tax Foundation) Unanswered questions about advance child tax credit payments. The IRS has answered questions taxpayers have about how the advance payments will affect refunds or taxes owed when they file next year. Read more.
(Tax Foundation) How High Are Property Taxes in Your State? Learn more.
(The Tax Advisor) When does it make sense to elect out of the installment method? Taxpayers selling businesses or assets in an installment sale often recognize gain under the installment method as installments are received. However, they may find it advantageous to elect out of the method and instead report the entire gain in the year of the sale. Learn more.
(The Tax Advisor) Virtual currency update. The IRS and other agencies continue to expand efforts to enforce reporting compliance for taxpayers who transact in virtual currency. Read more.
Business & Economic News
(CFO) Metric of the Month: Personnel Cost of Finance. Labor costs are on the rise. Here’s what you can do to help get the most from your investment.
(CNBC) Microsoft issues urgent security warning: Update your PC immediately. Learn why.
(Entrepreneur) The 7 habits you must practice if you want to be highly effective. Excerpted from Stephen Covey's book, these are some routines to improve life. Learn more.
(Philadelphia Business Journal) Job seekers are hungry for hiring bonuses. Many employers are embracing them. Several industries are ramping up their incentives to get workers on board amid a putative labor shortage, according to a new study by job site Indeed. Learn more.
(Reuters) U.S. job vacancy numbers are jolt for employers. The number of job openings rose to just above 9.2 million in May. Now there is a position available for every unemployed person, according to U.S. Labor Department data. Read more.
(The Wall Street Journal) Biden Targets Big Business in Sweeping Executive Order to Spur Competition. President Biden signed a broad executive order that aims to promote competitive markets across the U.S. economy and limit corporate dominance that the White House says puts consumers, workers, and smaller companies at a disadvantage. Learn more.
COVID-19 Related News
(Accounting Today) Pandemic relief extended for donated vacation. Cash payments made to charitable organizations that provide relief to victims of the COVID-19 pandemic by employers in exchange for sick, vacation, or personal leave that their employees forego will not be treated as compensation. Employees will not be treated as receiving the value of the leave as income and cannot claim a deduction for the leave that they donated to their employer. Read more.
(Entrepreneur) PPP Loan Forgiveness Period Beginning to Close; Payments May Be Due. PPP borrowers who took loans in 2020 will soon have their first payments due if they don't request forgiveness. The SBA reported in May that more than 70% of PPP loans made in 2020 have already been forgiven. They also noted that more than 1.7 million PPP loan borrowers have not even applied for forgiveness. Learn more.
(New Jersey Business) Pre-Registration for Emergency Assistance Loan Program Phase 2 Opens July 20. The New Jersey Economic Development Authority (NJEDA) announced pre-registration for the Small Business Emergency Assistance Loan Program (Phase 2) will open at 9:00 a.m. EST on Tuesday, July 20. The Emergency Assistance Loan Program provides up to $100,000 in financing to New Jersey small businesses and nonprofits. All applicants must pre-register to be eligible to apply. More information is available at https://business.nj.gov/covid/emergency-assistance-loan-program. Read the article.
(Journal of Accountancy) SBA officially closes Restaurant Revitalization Fund. Learn more.
(NJBIA) New Law Revises Economic Recovery Act to Make Incentives More Accessible. Learn how.
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Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
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